Persistent weakness in the freight market has impacted the first-quarter earnings of India-based dry bulk shipping firm Mercator Lines.
Net profit for the quarter plummeted 70% to $3.9m from $13.1m in the same quarter of last year. Revenue dipped by 2% to $38.1m.
“The freight rates have continued to remain low in the first-quarter of financial year 2012,” said Shalabh Mittal, managing director and ceo of Mercator.
The slash in profit was attributed to lower spot rates, renewal of contracts at lower rates and an increase in operating expenses, the Singapore-listed firm said.
Mercator achieved a time charter equivalent rate per vessel per day at $21,800 in the first-quarter.
Net profit for the quarter plummeted 70% to $3.9m from $13.1m in the same quarter of last year. Revenue dipped by 2% to $38.1m.
“The freight rates have continued to remain low in the first-quarter of financial year 2012,” said Shalabh Mittal, managing director and ceo of Mercator.
The slash in profit was attributed to lower spot rates, renewal of contracts at lower rates and an increase in operating expenses, the Singapore-listed firm said.
Mercator achieved a time charter equivalent rate per vessel per day at $21,800 in the first-quarter.